ANALYSIS OF DEVELOPMENT IN NIGERIAN BALANCE OF PAYMENT
This study, an analysis of development in Nigerian balance of payment (1995 – 1999) was carried out to assertion whether Nigeria has been paying her wages internationally to examine the statement with a view to determine what recent developments have taken place in Nigerians foreign trade and others transaction with the rest of the world.
Information was collected using literary method i.e. various publications, textbooks newspapers, magazines and journals. Also, oral interviews were used to elicit information from some government officials (staff).
It was found out that the exports receipts were sufficient to pay for the imports and settle some international obligations that fell due within the period, the fact remains that the managers of the economy did not exercise a considerable amount of control over the foreign exchange resources.
It was however, recommended that if not for the debt management strategies pursued by government during that period, there would have been more years deficits in the balance of payment position over and above four years recommended.
In an era when advancements in travel and communication technology have reduced the whole world to what may at best be described as a global village and the barriers that had hither to separated one country from the other appear to have been reduced to the bearest minimum, economic relationships can be established with little or no difficulty amongst nations.
Consequently, there is a continuos flow of resources across boarders. The continuity which characterizes the flow of resources makes reckoning imperative balance of payment statement is the means through which the reckoning is performed ad it is a summary of a country’s international transaction.
The major components of that activity are the trade balance (Merchandise exports minus merchandise imports), the current account balance (trade, services and transfer) and the capital accounts balance. The net total of these balances must equal zero, since the quantity of naira paid must equal the quantity received. It can also be deduced that the number of possible “balances” in the balance of payment is equal to the number of possible groupings of accounts in that statement. Balance computed on the basis of certain accounts in the balance of payments provide an indication of how given economic sectors contribute to the economic position of the country in international market.